graphs Flashcards
1
Q
philips curve
A
inflation y axis
unemployment x axis
2
Q
what types of unemployment exist a the NRU
A
5%
- structural, long term changes in demand or production techniques, leaves employees with no job and no use of their skill
- cyclical, lack of AD
- a bit of seasonal
3
Q
supply-side policy
A
policy’s designed to increase the productive capacity of an economy shift LRAS outwards and improve all 4 main macro economic objectives
4
Q
3 reasons why LRAS will shift out
A
- increase in quantity
- increase in quality
- increase in productive efficiency
5
Q
2 types of supply side policy
A
- interventionist
- market based
6
Q
interventionist ssp
A
using the government such as increase in gs decrease in tax…
7
Q
market based
A
removing the government, becoming more free market
8
Q
difference between supply side and expansionary fiscal policy
A
supply side is for improvement in LRAS
